» Estate Planning
We are in our 60s and all of our children are adults. Won't our assets go to them equally?
Not immediately and not entirely. As long as the property is in your joint names it will be distributed to the survivor. However, if it is only in an individual name then the children may have a claim to it.
My parents are getting up in years. How important is it to find out what their wishes are? Is that invading their privacy?
That is a reasonable invasion of their privacy request on your part and should not be considered an invasion of their privacy. Presumably, your parents will pass away before you do. You need to know what their wishes are for the disposition of their assets. Discussing this with an attorney can avoid bickering among survivors, preserve peace in the family, and insure that the beneficiaries are those desired by your parents and that the amount that each beneficiary receives is consistent with your parents' wishes.
What is a Trust and when is it necessary?
A trust is a legal document that creates a separate entity to handle some or all of your assets. The parties creating the trust are the grantors. Frequently, the grantors retain control of the trust assets by naming themselves trustees. A trust is a good way to avoid probate and to keep your assets private. You and your attorney can determine whether a trust is advisable after you discuss your personal desires and assets.
What is the difference between a Will and a Trust?
Good question. Both documents can direct where the assets go at the time of your death. A Will requires a court to appoint a "personal representative". The personal representative becomes the "owner" of your assets and, as "owner", can sell or transfer those assets as you have directed. In a trust, the trustee becomes the "owner" of the assets. The benefit of the trust is that you can name yourself as the trustee so that you still have complete control over the assets. A successor trustee would take over in the event of your death or incapacity. Therefore, there is always a person who has the authority to carry out the terms of the trust as you wish without court intervention.
I am single, in my mid 20s, without children. Why would I need a Will?
The answer depends upon the nature of your assets and where you want them to go. The assets will go completely to your parents. You need not do anything if that is what you want. However, if your parents are elderly, it may be advisable to put assets into a trust and name a person in whom you have confidence as trustee to preserve and distribute the assets for the benefit of your parents. This will relieve them of the administrative decisions regarding the investment of those assets. Placing real estate in a trust makes selling that property much easier. It will be necessary to obtain probate court approval to sell those assets if they are not in a trust
How important is it for me to have a Will and at what age should I consider it?
If you are like most people you should have a Will at such time as you turn 21 and have any assets. You should consult an attorney to see what would happen with your assets if you died without a Will. The rules differ in many of the states. Therefore, a general answer is not possible.
However, if you are unmarried, you need to decide whether you want parents or siblings to equally receive shares in your assets or whether you would like them to receive unequal distributions. If you are married, you need to decide whether all of your estate would go to your spouse. If you have children, you need to decide who would take care of them and who would handle their financial assets in the event of your death. You would need to determine whether you would like to make specific gifts or make any legacy distributions.
You should review your Will at least once a year (perhaps when you check smoke detectors or change from day light savings time to standard time). Check my suggestions for important events that should cause a review. You should review it with an attorney every 4-5 years because laws change and you may wish to take advantage of one of those changes.
